Binance to begin investing customer fiat funds in US Treasuries
- Binance received a court approval that enables the exchange to invest customer funds in US Treasury bills
- Crypto community shows enthusiasm towards the announcement of the court approval.
- BNB is up 5% in the past 24 hours.
Binance received court approval on Friday, allowing it to invest certain customers' fiat funds in US Treasury bills. Following the announcement, the BNB token saw a 5% rise as crypto community members debated the potential impact of this approval on Ethena's USDe token.
BNB rises following court approval of Binance's investment proposal
Cryptocurrency exchange Binance received a court approval that permits the investment of customer fiat funds into US Treasury bills. The court filing by the District Court of Columbia revealed that the exchange can only invest certain customer holdings under BitGo custody.
The exchange must also ensure that the investments stem from corporate assets drawn from third-party investors or businesses. The company is also required to report its investment data monthly.
According to court documents revealing the approval, the authorized US Treasury Bills "will mature on a rolling four-week basis," without any third-party inclusion.
The announcement raised the hopes of several crypto community members, who believe this is a big win for Binance and the crypto industry. Others suggest that the move will have a bullish impact on the price of the BNB token.
"My guess is Binance will take the path of becoming an exchange for both crypto and Tradfi assets eventually. They would be Nasdaq (exchange) + BlackRock (asset manager) + JPMorgan (bank) in the next decade. Bullish," said Eugene Ng, founding partner at DWF Labs.
Meanwhile, debates suggesting that the approval will impact Ethena's USDe stablecoin have made rounds on the X platform. Some investors believe that with Binance's new US Treasury bills investments, USDe investors may move their holdings away from the stablecoin.
"Why would you hodl USDe wen you could hodl fiat in Binance or sDAI in your wallet without the centralized risk? The trade? Long BNB & short ENA," said Crypto Condom on X.
Following the approval, BNB is up over 5%, as speculations of a potential bullish trend continue to spread.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
